Washoe County School District approves $58 million bond, $152.2 million capital program and amended FY26 budget

The Washoe County School District Board of Trustees on June 24 voted unanimously to authorize the issuance of up to $58,000,000 in general obligation, limited-tax school improvement "rollover" bonds, approve the district's amended final budget for fiscal year 2025'26 and authorize $152,200,000 in construction-phase funding for major projects across the district.

Those items will fund the district's FY26 annual capital renewal program, allow staff to encumber contracts ahead of a bond sale, and pay construction costs for two elementary school projects the board recommended through the Capital Funding Protection Committee.

CFO Mark Mathers said the measure would allow the district to "go to market to sell rollover bonds either this fall or winter" and that the $58 million represents the last allocation available under the district's current authorization from the County Debt Management Commission. He described rollover bonds as property-tax-backed debt paid from the district's property tax levy and noted the district currently has more than $80,000,000 in reserves. Mathers said approving the resolution now also allows the district to encumber contracts this summer so work can begin before bond proceeds are sold.

Board approval of the amended FY2025'26 budget followed a multi-month budget process. Budget Director Jeff Bozzo told trustees the district reduced an initial roughly $9.7 million shortfall to about $2.1 million through a combination of measures and that the budgeted fund balance will be approximately 10.0 percent with the deficit (10.4 percent if the budget were balanced). Bozzo said continuing pressures included PERS rate increases, operating costs for the new Debbie Smith CTE Academy, rising special-education costs and salary/benefit increases. He noted Board Policy 03/1951 permits limited use of reserves during transitions.

Superintendent Joe Ernst and several trustees praised staff for preserving classroom supports: Ernst said the district had "been able to keep those [kindergarten aide] positions intact," a point board leaders emphasized in response to public concern from kindergarten teachers.

On capital projects, Chief Facilities Management Officer Tammy Zimmerman presented the 2024'25 E Major Projects plan and the construction-phase funding requests the Capital Funding Protection Committee recommended. The board approved a combined funding package of $152,200,000 that the district described as: $50,000,000 for the districtwide capital renewal program; $80,319,000 for the Echo Lóder Elementary School replacement; and $21,900,000 for a modernization and addition at Bernice Matthews Elementary School. Zimmerman said the capital renewal list covers HVAC, paving, ADA and other priority systems identified through the district's facility condition index and site-level reviews.

Trustees asked detailed questions about playgrounds, shade and equitable distribution of outdoor improvements. Several trustees asked staff to prioritize shade structures and inclusive playground equipment for elementary and secondary schools that will not receive full facility modernization soon. Zimmerman said savings in bidding and category-level flexibility would allow staff to add playground and shade work within the $50 million renewal allocation and that specific alternates on the Matthews and Echo Lóder projects could be added if bids come in under estimates. Trustees also pressed for flexibility in Bernice Matthews' plans pending the outcome of a neighborhood zoning advisory process that could change enrollment and program needs; Zimmerman said some interior flexibility exists and the project team will coordinate further with the principal and community.

Bernice Matthews plans presented to the board include an ~11,000-square-foot classroom addition, new hub and collaboration spaces, a STEAM lab, updated single-point entry and outdoor learning areas. Zimmerman said Core Construction is the construction manager at-risk and the district expects to begin bidding in June 2025, start construction later in 2025 and complete the project in 2027. Echo Lóder is planned adjacent to the existing school on its current site; the district said it obtained site-plan approval from the City of Reno, intends to build on the existing soccer field and provide "mini pitches" and shaded outdoor spaces as part of the new design.

The board adopted all three funding items by recorded motions that carried 5'0to'0. The consent agenda (items 2.02'2.18) also passed 5'0to'0 earlier in the meeting.

Votes at a glance: the board recorded final approvals on the following motions during the meeting: - Resolution 25-017 authorizing issuance of general obligation limited-tax school improvement bonds, series 2025, aggregate principal not to exceed $58,000,000: approved, vote tally 5'0yes, 0'no. - Approval of the fiscal year 2025'26 amended final budget (district-wide): approved, vote tally 5'0yes, 0'no. Staff reported the budget reduced an initial projected deficit from about $9.7 million to $2.1 million and would leave a roughly 10.0 percent fund balance. - Approval of FY24'25 E Major Projects construction-phase funding and the capital renewal program, total $152,200,000 (capital renewal $50,000,000; Echo Lóder replacement $80,319,000; Bernice Matthews modernization $21,900,000): approved, vote tally 5'0yes, 0'no.

What happens next: staff may encumber contracts for the annual capital renewal program and proceed to bid the two elementary projects; bond sale timing will depend on market conditions and Board/County approvals. The district said it will continue community coordination on individual school designs and possible alternates if bid savings allow additional scope such as playground equipment and shade structures.

Speakers quoted or heard on the record in this item include: Chief Financial Officer Mark Mathers; Budget Director Jeff Bozzo; Superintendent Joe Ernst; Chief Facilities Management Officer Tammy Zimmerman; and multiple trustees and public commenters.